Rate predictions
| Trend | Range | |
|---|---|---|
Domestic hull and machinery, good loss records |
 |
+7.5% to +10% |
Domestic hull and machinery, poor loss records |
|
+20% or more |
London/international hull and machinery, good loss records |
|
+10% to +15% |
London/international hull and machinery, poor loss records |
|
+20% or more |
P&I domestic |
|
+10% to +15% |
P&I London/international |
|
+12.5% depending on individual club performance |
Domestic primary marine general |
|
+5% to +15% |
Domestic excess marine liability |
|
+10% to +20%, greater with underlying crew and towing exposure |
London marine liability |
|
15% or more |
USL&H mutual |
 |
Flat to +5% |
Key takeaway
The marine market remains firm, with underwriters still seeking increases on clean business while mandating cyber and communicable disease exclusions — for the first time on many policies.
Underwriting in the current environment is demanding.
- Due to reinsurance restrictions, all markets are mandating disease and cyber exclusions.
- Excess underwriters are seeking to reduce capacity, and quota share placements are the norm.
- Placing of excess coverage over $1 million primary placements is increasingly difficult in the face of reduced carrier appetite.
- Marine bumbershoot underwriters have in the past written policies with underlying non-marine liability exposures, such as auto, employers liability and CGL policies. They are becoming reluctant to do so due to adverse loss experience and the underpricing of these exposures. Marine reinsurers have also increased their scrutiny of extending coverage over non-marine risk.
- Burdens are increasing on both sides of the negotiating table. Underwriters are requiring substantially more data for renewals and new business.
- The high number of buyers marketing their business is overwhelming underwriters, whose time to review is limited.
- Underwriters remain under scrutiny by their senior management, who have become much more involved in the process. This negatively impacts the renewal process from the buyer’s perspective.
